Model for ICT Adoption in Developing Countries:
An Application to Value Creation in Agribusiness SMEs
SUDARYANTO and JERRY COURVISANOS
Corresponding author, email: [email protected] Both at School of Business, University of Ballarat, Victoria, Australia
Abstract
Small-to-medium sized agribusiness enterprises (SMAEs) in developing countries have a complicated nature on co-joint business to create a high value of output. Most of the businesses tend to work individually, isolated and uncooperatively. They are not aware that if they do business cooperatively, this will create a higher value of output. Modern sophisticated Information and Communication Technology (ICT) in business can play an important role in enabling cooperation to flourish. In developed countries, ICT adoption in SMAEs has resulted in significant value addition to management improvement and output. In this paper, selected ICT adoption models from SMAEs in developed countries are studied as a benchmark for application to ASEAN developing countries. The aim of this paper is to demonstrate the importance of ICT in SMAEs as a linkage among the agribusiness sub-system in order to reduce both transaction and information cost. A proposed model is developed as an alternative approach for value creation of agribusiness in developing countries.
Introduction
Effort of improving agribusiness in developing countries (DCs) has now become of concern in order to survive in the highly competitive global market place. The availability of product when it is needed by the customer has revealed crucial new insights in the market process. FAO (2005) pointed out that DCs dominate the majority of fresh food suppliers in the world. Fresh food products, which includes fresh meat, seafood, vegetables and fruits account for half the value of total food agricultural exports from DCs (Unneveher, 2000). On the other hand, consumers’ concerns with food safety and the environment threaten agribusiness in DCs. This issue raises a new innovation theme on agribusiness management for developing a competitive advantage in DCs.Agribusiness is a major economic component of DCs. It contributes up to 60 percent of GDP (FAO, 2005). Kirsten and Sartorius (2002) identify most of agribusiness in DCs as small-to-medium sized enterprises. Aside from their contribution towards GDP, small-to-medium sized agribusiness enterprises (SMAEs)1 in DCs absorb a large amount of the labour force (FAO, 2005; Rhodes, 1993). This means that when SMAEs are grouped collectively, they have a considerable influence on both national and regional economies.
SMAEs were more resistant to the Asian financial crisis in 1997 than the large corporations which collapsed dramatically. However, SMAEs in DCs are being threatened with major global-based structural changes. The changes in the world agricultural industry, from SMAEs to large business, have created more tightly aligned production and distribution throughout the whole of value chain (Boehlje and Doering, 2000). Moreover, multi-lateral trade liberalisation and the trend to market orientation have encouraged DCs to adjust SMAEs’ development programs. These programs should meet the technology revolution in agriculture which can dramatically alter the food system (Richard, 2004). However, in DCs, SMAEs still have a problem of technology lagging, which influences productivity (Hill, 1995).
1 Small Medium Agribusiness Enterprises (SMAEs) is part of the other SMEs which the same
In particular, Information and Communication Technology (ICT) presents a large obstacle for SMAEs with their rurality characteristic, yet these countries need to effectively and efficiently utilise ICT tools to create value in many parts of their economies, and especially agribusiness. In recognition of this problem, the paper identifies ICT adoption models and applies them to SMAEs in developed countries, with the benchmark for application being the ASEAN developing countries. The aim of this paper is to demonstrate the importance of adopting ICT in SMAEs as a linkage within the agribusiness sub-system.
SMAEs Characteristics and ICT’s Role in DCs
Agribusiness in DCs plays an important role in the national economy. In some countries agribusiness employment accounts for more than 60 percent of the total population. It means that SMAEs have a strong labour-intensive characteristic which is mostly unskilled-labour. Despite providing a big number of the labour force, agribusinesses have not shown a strong contribution yet towards the national economy (see Appendix 1). Agribusiness in DCs is still very important: (1) as a supplier of country’s main food (FAO, 2005), (2) as a labour market opportunity (Sudaryanto, 2006), (3) adding value in Gross Domestic Product (GDP)(Dholoakia and Harlam, 1994) and (4) strong foreign capital inflow (Simatupang, 1995). For these reasons, the basic proposition in this paper is that the adoption of ICT in agribusiness means a strong competitive advantage and value creation beyond the reach of any individual small to medium size firm.
Before the study on the process of value creation is undertaking, we specify the terminology of agribusiness, based on a review study:
Agribusiness includes all operations involved in the manufacture and distribution of farm supplies; production operation on the farm; the storage, processing and distribution of farm commodities made from them, trading (wholesaler, retailer), consumer to it, all non-farm firms and institution serving them (Saragih, 2000, p. 1)
Thus, agribusiness is a system which consists of four sub-systems: (1) up-stream, which produces agribusiness production infrastructure such as bridging, agrochemicals, automotive, and equipment, (2) on-farm, which produces primary farm product, (3) down-stream, which produces primary agricultural product for
and agro-services which provide all of services in relation with agribusiness such as banking, training, consultation, research and development.
SMAEs are inherently weak compared to the large agribusiness companies. SMAEs experience difficulties in achieving economies of scale in the purchase of inputs such as raw materials, finance, consulting services, etc. in line with other SMEs (UNIDO, 1999). SMAEs also tend to work individually and uncooperatively, unable to capture market opportunities which require large quantities of product, homogeneous standard and regularity of supply. To overcome these weaknesses and increase margin contributions, some professional farmers’ agent or associations have developed cooperative agribusiness by linking SMAEs together and with external parties, especially on aspects like negotiating large contracts and exporting overseas.
As part of this process of enhancing margins, SMAEs need new technology, including ICT, to reduce the information and transaction costs involved in the entire four agribusiness sub-systems (Richard, 2004). Such cost reductions add value by offering a good bargain (competitive advantage) for agribusiness output to the customer with compromising quality. Hence, this paper is concerned with value addition created by ICT adoption in the agribusiness sector of DCs. The proof that developed countries have benefited enormously from the adoption ICT in agribusiness is the reference point and rationale for this paper’s objective.
Note:
_____= direct link --- = indirect link
Figure 1 - ICTs Value Creation Framework in SMAEs
Figure 1 above outlines the process of value addition contributed by the agribusiness
sector, and the role ICT adoption in this framework. Direct links are the major route of contribution, while indirect links are contributions that are conducted through the ICT adoption factor in the framework. This paper concentrates on two arrow flows in Figure 1: (1) being the influence of the ICT adoption factor (2) being the role of ICT on value creation in agribusiness. In this context, whether SMAEs adopt or not adopt ICT is the issue that needs to be examined. On-farm labour and capital as part of the agribusiness production process and have indirect contribution on creating value by ICT. The rationale for ICT capital and skilled labour being separated out of direct farming is the managerial aspect of the key actors. The differences of influence factors on ICT adoption will create different profile of value creation. Whilst the “value” created by ICT is reflected by the contribution of GDP by agribusiness sector.
Agribusiness output Factor Influencing ICT adoption Labor Capital Technology-ICT GDP growth 9 other sectors Agribusiness Productivity in term of ICT (GDRP) 1 2 Value creation
The Value Chain of SMAEs
Some authors define the term value creation in ICT in the context of transaction costs (Amit and Zott, 2001; Bourakis et al., 2002a; Madden and Savage, 2000; Rhodes, 1993). ICT can help agribusinesses to search the information from consumers about the expected specification of the product improvement either by phone or internet (Salampasis et al., 2003). It has a lower cost rather than doing product test. Lower costs in agribusiness also can be gained using ICT via advertisements through the internet, negotiation by phone and offering product specification by facsimile. Transaction costs include the time spent by managers and employees searching for costumers and suppliers, communicating with counterparts in other companies regarding transaction details, arranging travel and physical space for meetings, and processing paper documents; as well as the cost of production and inventory management (Amit and Zott, 2001; Rhodes, 1993; Zimmermann, 2000). Transaction costs can be minimised when seller and buyer can do trading directly without using any agent, which has an influence on price of the end product. For instance, Madden and Savage (2000, p. 894) argue that “…the price of goods and services varies across markets and, unless a market is completely centralized, no agent is aware of all prices which tends to incur transaction cost in it”.
Lowering costs of searching information and doing transactions will improve productivity. In some developed countries, it is very common that modern telecommunications infrastructure reduces the costs of acquiring information, and improves the efficiency of product and factor markets (Kirsten and Sartorious, 2002; Richard, 2004). In contrast, in DCs, the information markets are relatively inefficient (Mbambo and Cronje, 2002; Paul, 2002). However the research that has been done by Bourakis et al. (2002b, p. 586) in Crete agro-food industry found that by using ICT almost 90% of agribusiness has lower information cost, then this is followed by penetration of new markets. Thus, ICT can play an important role even in DCs. Since most agribusiness in DCs is conducted by SMAEs, the benefit of ICT adoption will create value in SMAEs. Figure 2 below is the framework of ICT creating value in SMAEs.
In the context of agribusiness in SMAEs, value chain does not operate in a vacuum. It is rather in interaction closely with its socio-economic, political and physical environment. The value chain model set out in Figure 2 will be created based on the system in which agribusiness currently exists. There are three layers in the model: input, process and output. Value creation in SMAEs will go through the sub-systems from up-stream level to down-stream level. Bourakis et al. (2002a, p. 581) have identified four benefits of ICT adoption for agribusinesses:
1. Reduction in intermediate costs associated with wholesale and retail activities
2. Ability to decrease costs associated with purchasing by curbing the time and effort involved in supply and logistics operations.
3. Improved information selection and processing which result in improved management of the supply chain
4. Prospect of expanding market share and or developing new markets by decreasing the cost of selecting and processing information concerning the needs and the wants of existing and potential customers.
In SMAEs context, the value creation refers to the efficiency as a result of reducing both information and transaction costs. An agreement about the price and other aspects of the exchange, and the terms of the agreement which should be fulfilled is part of the information cost. The ICT transaction costs refer to external costs that arise when economic agents find other agents search for whom to exchange goods and services. Commonly, the agent then includes extra in the price from two types of the costs identified above. At the end of the stage, the total output of agribusiness is measured by the financial value which is nationally known as GDP. The higher the output, the more efficient they are. This model has been developed based on the nature of the system of agribusiness. Most of the members of the agribusiness system have probably adopted ICT already, but some of them have not adopted the Internet yet.
Adapted from Porter (1990), Sudaryanto and Yulisetyarini (2003)
Figure 2 - A Conceptual Model Proposed for Value Creation through ICT Adoption in SMAEs
The model in Figure 2 classifies the SMAEs into three groups: input, process and output stages, based on the characteristics of the food chain stages and players (see McGregor, 1997, p. 4). This framework will guide our study of SMAEs and the way ICT can improve efficiency of the system through better relations among enterprises and between with institutions which allow the enterprises to overcome their isolation and “roadblocks”. The input stage, as generally in all industries, is related to raw materials. In this study, the input refers to on-farm activities that produce raw agricultural products. For example, paddy farmers, fisheries and livestock dealers who produce the product, which can be used as the industry’s raw materials. Hence, the
External factors: type of industry, level of competition, IT and IS infrastructure, labour market,
government regulation and financial institutions
M A R G I N
Internal factors: firm size, type of ownership, growth rate, attitude of owner manager, internal
knowledge base Input: Farmer/fisheries/li vestock dealers; - to get market information, on demand of type of product, price and quality
- resource searching; in a seed, chemical sources and price
Process:
Agro-food Livestock Food-crops; - find the best vendor - find a potential market - looking a product innovation - find the trend of market Output: Exporter Intermediaries Stockist; - find a potential market, regionally, nationally and internationally - find a vendor as a partner - negotiate with potential buyer IT/ IC T a d o p tio n ; t el ep h o n e, f acs im ile, co m p u ter so ftw ar e, em ai l, w eb si te, t el eco n fer en ce, e -co m m er ce V A L U E
skilled labour, on operating ICT to search the information and doing transactions related to farming activities is of chief concern.
The process stage is related to the activities down-stream that produce semi-raw material such as fish, meat, rice, corn fruit and vegetable, and then it is processed to get the output such as soybean, coconut milk, coconut oil, high quality rice, fish cans, fruit juice, etc.. ICT’s role in this stage addresses the activity of product innovation, looking for competitive vendors and also market trend information search. This output is then taken over by exporters or agencies to deliver the product to final destinations (output stage). Up-stream agribusiness and the supportive subsystem in this value chain act as the external factors (or secondary activities) identified on the top of the model in Figure 2. Large (non-SMAEs) companies generally conduct all of the three stages of the model as an internal networking within their own organisations.
The link between each value chain can create added value either in micro aspect (companies) or macro aspect when they commit to reduce business costs. In terms of technological value creation, Porter and Millar (1985) argue that ICT can create value by supporting differentiation strategies. Value chain then will be helpful in examining value creation using ICT either in a micro or macro aspects. Micro aspect is the value creation in order to improve productivity, through efficiency and effectiveness by adopting ICT, while macro aspect is the impact of ICT infrastructure on the national economy. In this paper we investigate the ICT contribution on value creation in micro aspect by examining farmers’ effectiveness and efficiency on using ICT. However, there are some barriers toward the process of value creation such as; lack of infrastructure, financial barrier and availability of skilled human resources. These barriers vary depending on the size of the business, and affect the level of ICT adoption (more about this later). Putting all this together, we identify two major points: (1) ICT increases efficiency of agribusiness, especially in relation to reducing transaction and information costs, and (2) the use of ICT in agribusiness will also directly increase output. Below, a suitable model of ICT adoption is postulated for SMAEs by considering the ICT environment and the SMAEs circumstances in DCs.
A Proposed Model of ICT Adoption by SMAEs in DCs
ICT is a highly technological tool of communication facility with its amplification as the Internet. The original ICT is the humble telephone, which was followed chronologically by the more sophisticated technology of facsimile machines and internet technology. Adopting ICT has benefits not only for internal purposes but also for national economy development. Considering the countries barriers and since ICT becomes highly technological of communication facility, the ICT adoption process requires a countries ladder by which the Internet still being the central theme. The original ICT is the humble telephone, which was followed chronologically by the more sophisticated technology of facsimile machines and internet technology. Adopting ICT has benefits not only for internal purposes but also for national economy development.
The relationship among the adoption and countries economic development of ICTs has been a matter of study and discussion in information system literature which present a direct impact on economic development (Adam, 1996; Commission, 2004; Lee, 1994; Madden and Savage, 2000; Parham et al., 2001; Sudaryanto, 2006). Australian Productivity Commission (2004) report found that the strong acceleration in ICT use in the 1990s occurred led to a strong acceleration of over 1 percentage point in Australia’s Multifactor Productivity (MFP) growth. In USA, around 1 or 2 tenths of a percentage point per annum of the MFP acceleration was also credited to ICT adoption through the 1990s (Parham et al., 2001). Madden and Savage (2000) suggests a significant positive cross-country relationship between telecommunications capital and economic growth, when using alternative measures of telecommunication capital. Sudaryanto (2006) pointed out that ICT has a strong correlation with GDP in ASEAN countries, all of them being DCs.
The other authors take more theoretical and sceptical stand (Barton, 2003; Maru and Ehrle, 2003; Papathanassiou et al., 2003; Rashid and Al-Qirim, 2001; Silva and Figueroa, 2002). Barton (2003) study attempted to find out the problem of ICT adoption among New Zealand farmers with the main point that farmers use internet for searching agricultural information. While the study of Maru ( 2003) stated that in
farmers through the use of new ICT. Silva and Figueroa (2002) can solve such agent matter, by their statement that the institutional framework approach on ICT adoption in DCs can be applied by planners and decision makers in the formulation and evaluation of national ICTs policies. To start to develop ICT adoption, Rashid and Al-Qirim, (2001) classified the influencing factors of ICT adoption into four categories, i.e. technological (innovation) factors, organisational factors, environmental factors and also individual factors
In spite of the weaknesses of SMAE in managerial aspects which are explained earlier, the following table of ratio data of ICT boundary explains various ASEAN countries’ laggardness on ICT adoption.
Table 1 - Telecommunications and the Internet –Indicators in 2000
telephones
mobile
telephones Television PCs internet users Per 1,000 per 1,000 per 1,000 per 1,000 per 1,000
Singapore 562 346 348 458.4 750 Brunei 247 156 410 20 Malaysia 198 99 166 58.6 800 Thailand 84 32 236 21.6 200 The Philippines 37 22 108 15.1 150 Indonesia 27 5 136 8.2 300 Vietnam 26 2 47 6.4 10 Laos 6 1 4 1.1 0.5
Myanmar 5 0 7 not known not known
Cambodia 2 6 123 0.9 2
Source : International Telecommunication Union, (ITU, 2000)
Table 2 shows the limitation on ICT infrastructure in DCs in 2000. Singapore as a
transition economy maybe considered an exception. However, Singapore provides a benchmark for ICT development by neighbouring ASEAN countries, and shows the relative need for considerable improvement. Therefore Singapore’s figure is a desirable benchmark for other DCs who are initiating ICT adoption using the ladder in Figure 3.
On the other hand, it has been pointed out that the culture of farmers in DCs tends to have lower desirability in absorbing a new technology.
...the result in development in science and technology are not easily implemented in companies. Small and medium-sized enterprises in particular encounter problems adopting new knowledge, or even finding it.
(Nieuwenhuis, 2002, p. 284)
It has an implication that adopting ICT as an innovation in SMAEs needs to be addressed in the right manner. Policy makers, sector representatives and scientists agree that the current mode of production needs structural changes from production-oriented to market demand-oriented. For instance, farmers should produce for more competitive products by which quality-oriented and environmentally-sound is the priority. One way of enabling this is through ICT adoption and implementation strategies.
Figure 2.3. The ICT Adoption Ladder
IT ICT
Source: Adapted from Bowles and Wilson (2002, p.2), Maden and Savage (1998),
6. transformed Organization -open systems information for customer, suppliers and partners -new business models based on internetworki ng between organizations and individuals -Order pay on line, reducing cost -maximize accessibilit y and speed -Place in world wide market -Window on world wide supplier -Efficient internal and external communi cation -integrate supply chain also manufacture and delivery become seamless -minimize waste at every stage of the supply chain 5. e-business 4. e-commerce 3. website 2. e-mail 1. IT -computer -fixed phone -cellular phones -facsimile B u si n es s B en ef it
Figure 3 - The ICT Adoption Ladder in DCs
Figure 3 shows six levels of ICT adoption. There are two dimensions in this figure:
one reflects the benefit from adopting ICT (vertically) and the horizontal axis is the increasing organizational sophistication. In terms of business benefit, the higher the ICT level adopted by agribusiness, the higher the advantage received by firms such as efficiency and effectiveness. For example, online access banking, reconciliation with customers and suppliers and communication with accountants and statutory bodies on tax matters (Taylor and Murphy, 2004). The organisational change and sophisticated benefit means that the more sophisticated ICT adopted, the higher the value of the business. The company’s image from conventional to digital class of business will increase customer sophistication. For example, web-based publication, automated interact supplier and customer, enabling customer and supplier tracking real time deliveries.
The phenomenon of ICT has become a crucial issue in the world since the 1990s, including in DCs, which aim to reduce the lag of technological knowledge and improve value creation. Traditional ways of doing business are inadequate since the arrival of the ICT revolution. ICT has become the most popular channel of distribution used by consumers to search supplier options, price comparison, as well as promoting business products. This sophistication of technology has also an impact on agribusiness information system development and value creation (Richard, 2004), agribusiness product’s pricing strategies (Matsuda, 1994), selling product online (Salampasis et al., 2003) and new product innovations (Koku, 1998). Therefore, due to the limited ICT infrastructure service, the following figure is proposed as ICT DCs adoption model in SMAEs.
For further empirical research, Figure 4 presents a complete model framework to analyse ICT adoption by SMAEs. In this model, there are six stages in adopting ICT for business. The first stage is Internal/environment Scanning in which the study attempts to identify what kind of ICT tools currently are being used in doing business. This paper also tries to identify to what extent they use telephone, facsimile, mobile phone or computer in daily business. Do they use internet for their business? If the
Internet could specifically create value and develop policies to enhance Internet adoption.
Adoption factors are included in the managerial attitudes towards ICT development. The next stage for the researcher is to specify Adoption ICT Stage 1. This stage can also be called the early stage in which most SMAEs use the Internet for e-mail and the owner/manager is the only one who can use it. Thirdly, is the Adoption ICT Stage 2, which is the extended use above basic Stage 1, with simple websites and one way communication on the website. Fourth, is the Acceptance Stage in which the internal management of a company completely accepts the Internet as part of its business. In this stage the owner/manager motivates the employee to commit to use ICT.
Figure 4 - The ICT Adoption Stages Process in SMAEs
Fifth is the Routinization Stage. In this stage, the company tends to use Internet as a normal activity and develops an integrated supply chain for e-business. The last stage is Institutionalization, in which the company uses ICT comprehensively and tries to maximize the potential benefit of adopting ICT, such as developing networks for business-to-business and business-to-customers, and electronic data interchange.
This study also would like to identify external influential factors in ICT adoption based on the owner/manager perception. The external environment of the companies
Adoption ICT stage 1: implementati on IT and IS in particular area; email, for owner manager only Acceptance: inducing members of organization to commit to use ICT; email task order, online trading with maximize accessibility and speed Routinization: use ICT as a normal activity and develop integrated supply chain for e-business
Institutionalizati on: using ICT on
comprehensively such as develop customer-supplier information, and develop virtual networking Initiation/environ ment scanning(IT):
What kinds of IT/IS tools used by SMAEs for business; such as telephone, facsimile and software computer
Do they use internet for business?
Adoption ICT stage 2 and adaptation:
The use of ICT for email and simple websites for managerial and one way communication website
Yes yes
yes
External Factors: type of industry, level of
competition, ICT infrastructure, labour market, government regulation, financial institution
Internal Factors: firm size, type of
ownership, growth rate, attitude of owner manager, internal knowledge of manager
yes yes Value Creation process Model yes No Identify external and internal factors and go to next model
internet security. The enterprise’s reason for not adopting ICT needs to be also identified.
Conclusion
The future challenge for SMAEs’ ICT adoption in DCs is to respond to market research on information systems in order to analyse consumer preferences and competitors. Market information is necessary to penetrate a market with high value as a competitive advantage.
The significance on national economy contribution of SMAEs also can be acquired when the learning process of internal organisational change has a snowball effect on innovative talent. The organisational efficiency becomes deliberately the main objectives instead of merely increasing productivity. Therefore, SMAEs in DCs should have a knowledge on how important is innovation of ICT adoption on improving high value of output. As a consequence, ICT adoption know-how and innovation training in the SMAEs should be considered as essential. It is in this process that the ICT model framework identified in Figure 4 can contribute both to filling in the research gap with respect to ICT adoption and for practical policy implementation in developing countries.
Bibliography
Adam, L. (1996). Electronic Communications Technology and Development of Internet in Africa. Information technology for Development, 7(3), 133-145. Amit, R., and Zott, C. (2001). Value creation in e-business. Strategic Management
Journal, 22, 493-520.
Barton, H. (2003). New Zealand Farmers and The Internet. British Food Journal, 105(1/2), pp. 96-110.
Boehlje, M., and Doering, O. (2000). farm Policy in an Industrial Agriculture. Journal of Agribusiness (special Issue), 18(1), 53-60.
Bourakis, G., Kourgiantakis, M., and Migdalas, A. (2002a). The Impact of e-Commerce on Agro-food Marketing: The Case of Agricultural Cooperatives, Firms and Consumers in Crete. British Food Journal, 104(8), 580-590.
Bourakis, G., Kourgiantakis, M., and Migdalas, A. (2002b). The impact of e-commerce on agro-food marketing; the case of agricultural cooperatives, firms and consumers in Crete. British Food Journal, 104(8), 580-590.
Bowles, M., and Wilson, P. (2002). Why ICT and Economic Growth Requires Deliberate Effort to Accelerate SME Adoption and Deployment of IT and E-Commerce. from www.marcbowles.com
Dholoakia, R., and Harlam, B. (1994). Telecommunications and Economic Development. Telecommunications Policy, 18, 470-477.
FAO. (2005). Selected Indicators of Food and Agriculture Development in Asia-Pacific Region 1994-2004. Bangkok: FAO of The UN Regional Office for Asia and Pacific
Hill, H. (1995). Indonesia's Great Leap Forward? Technology Development and Policy Issues. Bulletin of Indonesian Economics Studies, 31(2), 83-123.
ITU. (2000). World Telecommunication Indicators. Geneva: ITU.
Kirsten, J., and Sartorious, K. (2002). Linking Agribusiness and Small-Scale Farmers in Developing Countries: Is there a new Role for Contract Farming? Development Southern Africa, 19(4).
Koku, P. S. (1998). Innovation and Information Management in the Food Industry. British Food Journal, 100(6), 278-285.
Lee, C. (1994). The Causal Relationship between Investment and Economic Development in Korea. Paper presented at the 10th Biennial International Telecomunications Society Meeting, Sydney.
Madden, G., and Savage, S. J. (2000). Telecommunications and economic growth. International Journal of Social Economics, 27(7/8/9/10), 893-906.
Maden, G., and Savage, S. J. (1998). CEE Telecommunication Investment and Economic Growth. Information Economics and Policy, 10, 173-195.
Maru, A., and Ehrle, K. (2003). Building A Framework for ICT Use in Agricultural Research and Development: Is The North Different from The South. Paper presented at the EFITA 2003 Conference, Debrecen, Hungary.
Matsuda, T. (1994). The Use of Information The Use of Information Technology to Achieve Technology Accurate Pricing in Agricultural Commodity Markets in Japan. Information Technology & People,.
Mbambo, B., and Cronje, J. C. (2002). The Internet as an Information Conduit in Developing Countries: an Investigation of World Wide Web Usability among Small and Medium Textile Entreprise in Botswana. Aslib Proceedings, 54(4), 251-259.
McGregor, M. J. (1997). A Systems View of Agribusiness. Jurnal Agribisnis, 1(1&2). Nieuwenhuis, L. F. M. (2002). Innovation and Learning in Agriculture. Journal of
European Industrial Training, 26(6), 283-291.
OECD. (2002). OECD Small and Medium Enterprise Outlook.
Papathanassiou, E., Kardaras, D., and Arkoumani, B. (2003). Management Context and Impact of e-Commerce in The Greek Food Industries Logistics Information Management, 16(2), 134-144.
Parham, D., Roberts, P., and Sun, H. (2001). Information Technology and Aaustralia's Productivity Surge. In Productivity Commission Staff Reesearch Paper. Canberra: AustInfo.
Paul, J. (2002). Narrowing the Digital Divide: Innitiatives undertaken by the Association of South-East Asian Nations (ASEAN). Program: Electronic Library and Information System, 36(1), 13-22.
Porter, M. (1990). Competitive Advantage of Nation. New York: Free Press.
Porter, M. E., and Millar, V. E. (1985). How information gives you competitive advantage. Harvard Business Review, 63(4), 149-160.
Rashid, M. A., and Al-Qirim, N. A. (2001). E-Commerce Technology Adoption Framework by New Zealand Small to Medium Enterprises. Research Letters Information Mathematical Science, 2(1), 63-70.
Rhodes, V. J. (1993). Industrialization of Agriculture: Discussion. American Journal of Agricultural Economics, 75(5), 1137-1181.
Richard, M. (2004). Failed Revolution: Strategic Implication for Future Commercialization of Food System Technology. Agro Strategies, 4, 1-4.
Salampasis, M., Batzios, C., Samathrakis, V., Adroulidakis, S., and Adroulidaki, M. (2003, 5-9 July). Use and Impact of the Internet in The Greek Agricultural Sector: Final result of A Survey of web Site Owners. Paper presented at the EFITA, Debrecen, Hungary.
Saragih, B. (2000). Karakteristik Agribisnis dan Implikasinya untuk Manajemen Agribisnis (Agribusiness Characteristics and its Implication to Agribusiness Management). Jurnal Agribisnis, IV(1), 1-6.
Silva, L., and Figueroa, B. E. (2002). Institutional Intervention and the Expansion of ICTs in Latin America: The case of Chile
Information Technology and People, 15(1), 8-25.
Simatupang. (1995). Agricultural Industrialization as an Agribusiness Strategy and Agriculture Development in the Globalization Era (unpublished article). Bogor: Faculty of Agriculture, Bogor Agricultural Institute (IPB).
Smith, J. (1999). Information Technology in the Small Business: Establishing the Basis for a Management Information System. Journal of Small Business and Entreprise Development, 6(4), pp. 326-340.
Sudaryanto. (2006). ASEAN ICT Adoption and Economic Growth: The Study of ASEAN 5 and the Late Comers' readiness in Facing Globalization and ASEAN Market Integration (AMI). Asia-Studies monthly(March 2006).
Sudaryanto, and Yulisetyarini, D. (2003). Value Creation and Prespective Strategy on
E-business/E-commerce. Manajemen Usahawan indonesia, 03/Th.
XXXII(March), pp. 42-48.
Taylor, M., and Murphy, A. (2004). SME and E-business. Journal of Small Business and Enterprise Development, 11(3), pp. 280-289.
UNIDO. (1999). SME Cluster and Network Development in Developing Countries: The Experience of UNIDO. Vienna: IPC/PSD UNIDO.
Unneveher, L. J. (2000). Food Safety Issues and Fresh Food Product Export from LDCs. Agricultural Economics, 23(september), 231-240.
Zimmermann, F. (2000). The Impact of ICT Use on Export Orientation of SME; Theoretical Consideration and Empirical Evidence from Chile.
Appendix 1
Agricultural Countries Performance in Selected Developing Countries in Asia Pacific Regions Country Agricultural Population GDP (US$. million) GDP Agribusi- ness (%) in 2003 Import Agribusine ss (US$. million) Export Agribusiness (US$. million) Cambodia 4,299 34,5 279.7 18.6 Indonesia 208,311 16.6 405.6 992.1 Lao PDR 2,036 48.6 102.8 14.5 Malaysia 103,161 9.7 333.3 580.6 Myanmar - 57.2 332.6 202.4 Philippines 80,574 14.5 3,071.2 1,865.2 Thailand 143,163 9.8 3,528.4 10,355.9 Timor-Leste 314 - 37.3 10.7 Vietnam 39,157 21.8 448.8 2,231.0 Kazakhstan 24,205 7.8 620.6 848.5 Kyrgyztan 1,700 38.7 95.8 104.8 Tajikistan 1,208 23,4 103.9 150.8 Turkmenistan 6.0 25.2 139.7 57.0 Uzbekistan 9,949 35.2 144.4 851.6 Mongolia 1,262 28.1 119.3 79.1 Source : FAO (2005)
